Creative Realities, Inc. · NASDAQ:CREX
Creative Realities — Investor Presentation (March 2022)
40 slides from Creative Realities's investor presentation, Mar 23, 2022
Slide 1: A Connected Journey and Inspired Experience
March 23, 2022 1 A CONNECTED JOURNEY AND INSPIRED EXPERIENCE
Slide 2: Forward Looking Statements
Proprietary And Confidential This presentation contains "forward - looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amen ded, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and in cludes
Slide 3: Use of Non-GAAP Measures
Proprietary And Confidential Creative Realities, Inc. prepares its consolidated financial statements in accordance with United States generally accepted a cco unting principles (“GAAP”). In addition to disclosing financial results prepared in accordance with GAAP, the Company discloses info rma tion
Slide 4: Who We Are and What We Do
Proprietary And Confidential Who We Are and What We Do
Slide 5: Company Information Overview
Proprietary And Confidential Company Information 5 Overview Creative Realities, Inc . (CRI) provides digital solutions to enhance communications in a wide - ranging variety of out - of - home environments by providing innovative digital signage solutions for key market segments and use cases includi
Slide 6: Sources of Revenue
Proprietary And Confidential Sources of Revenue The Company generally derives revenue from four primary sources: • Recurring Services – sticky, long - term contractual agreements to provide subscription licensing and/or other support services for our digital signage software platforms, which are gen
Slide 7: Examples of our work
Proprietary And Confidential Examples of our work
Slide 8: Digital Signage Captures Attention
8 Proprietary And Confidential 8 Information contained within this presentation is considered proprietary and confidential by CRI © 2020 DIGITAL SIGNAGE CAPTURES ATTENTION We build, manage, and support digital signage systems like this….
Slide 9: Network Monetization
Proprietary And Confidential Proprietary And Confidential 9 NETWORK MONETIZATION And monetize reach and impressions like this. Providing audiences with engaging advertising and venue owners with additional revenue.
Slide 10: Large Venues, Stadiums, and Arenas
Proprietary And Confidential LARGE VENUES, STADIUMS, AND ARENAS Deploying and Managing 100’s of digital menu board and merchandiser displays at dozens of amateur and professional sports arenas and stadium around the country. Information contained within this presentation is considered proprietary an
Slide 11: LED Experiences
Proprietary And Confidential LED EXPERIENCES CRI has installed more than 500,000 square feet of large formal LED in the past 3 years .
Slide 12: Verizon Wireless Voice Activated 5G Experience
Proprietary And Confidential Proprietary And Confidential Verizon Wireless Voice Activated 5G Experience The Covid - 19 Pandemic created a challenge in retail. Providing a non - touch solution was the ask. The project was deployed in October 2020 and there are now approximately 1,400 experiences fea
Slide 13: Connected Dealerships
13 CONNECTED DEALERSHIPS We provides a range of digital experiences deployed across 2,700+ automotive dealerships in 12 countries; expects ~440 additional locations will be added in 3Q 2022
Slide 14: The Addressable Market: Update and Overview
Proprietary And Confidential The Addressable Market: Update and Overview
Slide 15: Addressable Market
Proprietary And Confidential Note: Figures represent global market sizes. Source: AVIXA Research; Estimation based on 2020 expected decline and average CAGR from 2020 – 2026 Event Technology Retail Technology Out of Home DOOH defined as Digital Place - Based Networks or Digital Out of Home – Indoor
Slide 16: Retail Transformation, Omnichannel and Personalization
Proprietary And Confidential • Retail Transformation : • Retail players are integrating digital signage to share relevant and profitable content at their premises to drive consumer behavior and purchase decisions. • Shift in focus to drive - thru, mobile, and remote ordering requires an investment i
Slide 17: Monetization and Improved Return on Investment
Proprietary And Confidential • Monetization : • I ntegration of digital ads into retail stores to leverage impressions for on - premise destination traffic and create an enhanced in - store user experience. • Improved Return on Investment : • The de clining cost of displays has increased adoption ra
Slide 18: Integrated, Omnichannel Store-Level Digital Ecosystems
Proprietary And Confidential CRI delivers integrated, omnichannel, store - level digital ecosystems leveraging big data and analytics to drive consumer behavior 18 Machine Learning Capa bilitie s Age Identification Image Recognition Gender Identification Mood Identification Temperature Sensing Data
Slide 19: Industry Fragmentation Supports an Acquisition Strategy
Proprietary And Confidential Market dynamics: Industry fragmentation supports an acquisition strategy 19 Solid platform for accretive acquisitions • Cross sell products and services • Expand engagements • Digital signage software platform consolidation (CMS rationalization) • Reduce overhead • Drive
Slide 20: Industry Consolidation: Recent Transactions
Proprietary And Confidential Industry Consolidation is Happening Now: Recent Transactions Source: Peter J Solomon .
Slide 21: Why We Will Win
Proprietary And Confidential Why We Will Win
Slide 22: Our Technology Platforms
Proprietary And Confidential Our Technology Platforms… We deploy and install digital signage hardware systems on behalf of our clients. Post - deployment, those systems ultimately leverage our software platforms to manage the content you see on the displays. Each of our platforms operate on a subscr
Slide 23: Drive Best in Class Execution and Support
Proprietary And Confidential Warehouse & Logistics Co - located with company HQ and houses customer - owned inventory. Located 8.6 miles from UPS Air Worldwide Hub. Project Deployment Expertise in technically complex and high profile system installations. Nationwide network of field technicians. Net
Slide 24: Drive Integrated Services that Deliver Measurable Results
Proprietary And Confidential Creative Design and Content Management Our award - winning creative team has the knowledge and experience to leverage the medium and effectively connect your brand and products to consumers. Analytics and Content Optimization Our unique approach to data - driven design a
Slide 25: Our Scale Matches Our Clients' Footprint
Proprietary And Confidential Boise, ID New York, NY Boston, MA Louisville, KY Headquarters Atlanta, GA Tampa, FL Windsor, ON Dallas, TX Office/Support Regional Teams Our scale matches that of our clients’ footprint Denver, CO 25 Minneapolis, MN
Slide 26: Competitive Advantages
Proprietary And Confidential Competitive Advantages When comparing Creative Realities to other digital signage competitors, our customers value the following competitive advanta ges : • Breadth of solutions – we leverage a ‘single vendor’ approach, providing clients with a one - stop - shop for sour
Slide 27: 2021 Review
Proprietary And Confidential 2021 Review
Slide 28: 2021 Quarterly Highlights
Proprietary And Confidential • 1Q 2021 • Received forgiveness for PPP Loan of $1.5 million • Completed offering at $2.50/share • Participated in the Maxim M - Vest Conference • Announced win of significant C - store customer • 2Q 2021 • Finalized conversion of >7,000 displays for C - store customer
Slide 29: Balance Sheet
Proprietary And Confidential Balance Sheet 29 2021 Highlights : • Net working capital improved $3.2MM • Reduced Inventory balances by $0.5MM • Elimination of $1.6MM Seller Note (debt) • Elimination of $1.6MM PPP Loan (debt) • Improved D&B Supplier Risk Evaluation Ratings to “Low Risk” in all categor
Slide 30: Statement of Operations
Proprietary And Confidential Statement of Operations 30 2021 Highlights : • YoY Revenue expansion: • +5.6% topline growth • +20.5% core digital signage growth • Maintained margins despite headwinds • Drove reductions in core operating expenses >$1MM net of ERC credits For the Years Ended December 31
Slide 31: 2022 and Beyond
Proprietary And Confidential 2022 and Beyond
Slide 32: The Reflect Merger
32 The Reflect Merger
Slide 33: Reflect Merger Rationale
Proprietary And Confidential • Customers – enterprise customers generating in excess of $7 million in run - rate Annual Recurring Revenue (“ARR”) • Technology – fills a key gap in our software service offering and prospectively expands product set (i.e., analytics) • ReflectView • ReflectXperience •
Slide 34: Enhances Long-Term Value Creation
Proprietary And Confidential • Enhances the long - term value creation of the Company : • Provides operating flexibility to scale down operations during down cycle events • Scale economies and synergy impact company cost structure and convey additional pricing flexibility for enhanced competitive po
Slide 35: The Combined Company
Proprietary And Confidential • Our proforma 2021 revenue was ~$30.7 million • Anticipate 2022 of at least $43 million, representing organic growth of >$12 million • 40% Year over Year • ARR proforma run rate of ~$12 million exiting 2021 • Anticipate growing ARR run - rate to >$15MM by 12/31/2022 bas
Slide 36: Our Vision
Proprietary And Confidential • We expect to scale to a +$150 million global digital marketing solutions provider (organic & acquisition) • Become the go - to ‘acquirer’ in the industry • Leverage infrastructure to generate significant, profitable growth • Expand expertise in strategic industry verti
Slide 37: Contact
Proprietary And Confidential 37 Rick Mills CEO Rick.mills@cri.com Will Logan Will.logan@cri.com CRI HQ – 502.791.8800 www.cri.com
Slide 38: Appendix
Proprietary And Confidential APPENDIX
Slide 39: Reconciliation of Net Income to EBITDA and Adjusted EBITDA 2021
Proprietary And Confidential 39 This table presents a reconciliation of EBITDA and Adjusted EBITDA from net loss, CRI's most directly comparable financial measure calculated and presented in accordance with GAAP Quarters Ended Year Ended December 31, September 30, June 30 March 31, Quarters ended 20
Slide 40: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA 2020
Proprietary And Confidential RECONCILATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA ($000’s) 40 This table presents a reconciliation of EBITDA and Adjusted EBITDA from net loss, CRI's most directly comparable financial measure calculated and presented in accordance with GAAP Quarters Ended
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